ALEXANDRIA, Va. Senate Majority Whip Richard Durbin, D-Ill., recently introduced legislation to address excessive fees imposed by credit card companies for retail transactions. As a result, the National Association of Chain Drug Stores has commended the senator on his work.
The association went on to say that excessive “interchange” fees for credit card transactions increase costs for retailers and lead to higher prices for consumers. Because of the market power held by major credit card companies, merchants are currently unable to negotiate fair fees. Sen. Durbin’s bill, the Credit Card Fair Fee Act of 2008 (S. 3086), would ensure that interchange fees are set in open negotiations between retailers and credit card companies, helping to level the playing field for merchants and the customers they serve.
This bill mirrors H.R. 5546, which was recently introduced in the U.S. House of Representatives by House Judiciary chairman John Conyers, D-Mich., and Rep. Chris Cannon, R-Utah.
“Pharmacy is a low margin business,” said NACDS president and chief executive officer Steve Anderson. “Money that we are forced to pay credit card companies for excessive interchange fees cannot be devoted to helping consumers lower their prescription drug costs, assisting patients with medication management or other pharmacy services they need. We are very pleased that both the House and Senate have recognized the need for this legislation, and we thank Sen. Durbin for his leadership in the Senate.”